Tech Lahore

Pakistan jumps 10 places on A.T. Kearney’s list – BusinessWeek recognizes Pakistan as one of the world’s leading IT destinations

Posted in Economy, Infrastructure, innovation, Living in Pakistan, SW Industry by techlahore on June 7, 2009
The Centaurus rises in Islamabad. A huge, almost $400M infrastructure project that will be completed next year. Rapid construction in progress.

The Centaurus rises in Islamabad. A huge, almost $400M infrastructure project that will be completed next year. Rapid construction in progress.

BusinessWeek just published an article about Pakistan’s rapidly rising stature as an international information technology outsourcing destination. The article cites A.T. Kearney’s May 2009 report which places Pakistan at number 20, up 10 places from the 2007 ranking of 30. This is despite all the rhetoric and nonsense in the media that doesn’t deserve much attention here – but Sepoy can introduce you to the “Talibothra” rubbish I’m talking about.

You have to be completely blind and devoid of any intellect to not recognize the progress that has been unfolding with great rapidity in Pakistan. Granted, the positive news and media glorification you would expect if this were happening in, say Brazil, has been found lacking. Quite the contrary, the NY Times, and the fast-failing industry it represents, has still not quite gotten over the decade old obsession with the Church of the Flying Talibothra Monster.

So, humour me for a moment and subtract the malevolent sensationalism from the discussion. What you’re left with is the story of a country whose GDP continues to grow despite the global recession, where infrastructure is being built and expanded at a frantic pace, a country that has seen its stock exchange go up by 30% this year, a country that is significantly increasing development spend and bringing alternate energy projects online, developing new dams, increasing high-technology exports and expanding its universities. And of course, a country where increasingly large numbers of technology startups are growing and being incubated.  This is the real Pakistan. Thank you for recognizing reality, BusinessWeek.

13 Responses

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  1. nautilus said, on June 8, 2009 at 2:40 am

    Pakistan does not have the same GDP growth rate it did earlier, now it’s much lower. the “official” GDP growth rate is only 2%, which has only been recently revised from the earlier 2.5% growth rate. even though it’s still growth, it’s no where near enough to keep up with the population growth and the already-heavy debt and external liabilities that have greatly increased the past few months thanks to the IMF loans.

    actually some calculate the actual GDP growth rate to be much lower.
    (see here http://www.thenews.com.pk/daily_detail.asp?id=177982 )

    nonetheless, the government can still do its best to attract foreign investment-especially since we chased much of it away. hopefully the government will realize the growth potential of the IT industry and give it the due attention it needs. I also hope that there is more collaboration between our universities and the industry.

    • ian said, on June 10, 2009 at 10:13 am

      As one who is investing in PK i do need reassurance there is a creative base of students who will take advantage of our free services ( a startup enabler )

      I have tried to find some student organisation which is centered on how best the creativity of Pk youth can be funneled..

      So far without success……where are they hiding ?? Ian

      • techlahore said, on June 15, 2009 at 12:00 am

        Ian, they aren’t hiding anywhere but in plain sight! Please get in touch with the faculty at LUMS (Lahore University of Management Sciences). LUMS students have launched several startups already, including services companies such as Uraan that have crossed the 100-employee threshold.

        You should also contact Jehan Ara at PASHA; she is incredibly helpful and will assist you with the networking you require.

  2. […] one of my favourite techblogs, has also put up a post regarding this article which is well worth […]

  3. […] Tech Lahore has a good post about this as well. You should read the interesting discussion thread going on at the BusinessWeek site. […]

  4. […] Tech Lahore has a good post about this as well. You should read the interesting discussion thread going on at the BusinessWeek site. SHARETHIS.addEntry({ title: "Pakistan Amongst Top 20 Outsourcing Destinations", url: "http://pakistantelecomexpo.com/?p=161" }); No Comment var addthis_pub="izwan00"; BOOKMARK This entry was posted on Tuesday, June 9th, 2009 at 9:29 pm and is filed under Business, telecom companies, telecommunications. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. […]

  5. techlahore said, on June 15, 2009 at 12:08 am

    @Nautilus: “Pakistan does not have the same GDP growth rate it did earlier”

    So? No one in the world does. We are in a global recession. However, Pakistan still grew while most other economies of the world shrunk.

    Pakistan’s debt-servicing is far more in control than it was a decade ago. The GDP has more than doubled while external debt has shrunk as a percentage of GDP. The terms of loans obtained are also far more friendly than in the past.

    There are some very fundamental things in the works that will transform Pakistan’s economy in the near future; energy infrastructure, Iran-Pakistan pipeline, Khalifa refinery, two Thar coal based power 1GW plants… Large scale intensive farming is another area which is picking up. Foreign investors from countries in the Middle East as well as local groups, such as Mian Mansha’s are continuing to invest in these areas heavily.

    Fear concerning Pakistan’s near-term (2-3 years) economic prospects is unfounded.

    • Nautilus said, on June 16, 2009 at 4:14 am

      Pakistan was never affected by the financial crisis and hasn’t really been affected greatly by the global recession-with small slow-down in exports. I believe a bit of googling on this subject, linked with recorded statements coming from the SBP, State Bank of Pakistan, will clear up a few misconceptions. the quagmire known as our economy is suffering due to incompetence, lack of attention and governance, load-shedding halting production lines, and many other factors.

      Pakistan’s debt just grew by $10 billion dollars the past few months and is likely to increase again as the government continues to borrow money. They are going to borrow even if its to cover for budget deficits-as seen here http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/news/business/11-pakistan-asks-imf-for–4bn-to-plug-budget-deficit–il–07.

      The GDP doubled by 2007 as the economic indicators for that time show, what about now? economic forecasts don’t look too good, that’s exactly why so much focus is on this new budget plan since it is probably the last hope to revive a faltering economy. even then, I strongly believe much of that budget will go to waste thanks to rampant corruption in all areas of the bureacracy.

      “Fear concerning Pakistan’s near-term (2-3 years) economic prospects is unfounded.”

      which is why I said this, I stress IT since this is after all, a site for IT-related subjects.

      “nonetheless, the government can still do its best to attract foreign investment-especially since we chased much of it away. hopefully the government will realize the growth potential of the IT industry and give it the due attention it needs. I also hope that there is more collaboration between our universities and the industry.”

  6. […] Tech Lahore has a good post about this as well. You should read the interesting discussion thread going on at the BusinessWeek site. […]

  7. webdevelopmentservice said, on June 16, 2009 at 3:11 pm

    It clearly manifests ability of Pakistani IT experts. On the other hand it shows unemployment and low paid work in Pakistan. West is fast moving towards other financially productive highly paid profession.

  8. […] Tech Lahore has a good post about this as well. You should read the interesting discussion thread going on at the BusinessWeek site. June 16th, 2009 in Pakistan | tags: blog.karachiundernet.com, business, Competitive Trends, Foreign Investment, ICT, Information Technology, infrastructure, outsourcing, Pakistan St0L3n […]

  9. […] Not Ranked  :  +0 / -0  0 score      Re: corruption list: Pakistan ranked 139 If we want to play the ranking game, please know that the World Bank ranks Pakistan 85th in the "Ease of doing business" index, whereas India stands at 133. You cannot have such a significantly better business environment if you have higher corruption. Which is why I have very little faith in the Transparency assessment. In the World Bank's detailed assessment, almost every aspect of doing business, from incorporation, to tax holidays, to better infrastructure etc. is easier in Pakistan. In fact, historically, the one area which Pakistan could have done with an improvement in was the ease with which taxes are filed; since the last year or so, Pakistan has moved to a completely electronic e-filing system. My business filed taxes last year with zero difficulties. I expect this will be taken into account when the World Bank refreshes the list next year and Pakistan will rise further on the list. The World Bank's assessment casts serious doubt on Transparency's (usually politically driven) rankings. The World Bank's list is available here: Rankings – Doing Business – The World Bank Group A.T. Kearney has also recently significantly upgraded Pakistan's ranking on the list of offshoring destinations. That link is listed here: Pakistan jumps 10 places on A.T. Kearney’s list – BusinessWeek recognizes Pakistan as on… […]

  10. […] Read the full article and a great reaction. […]


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